Home Sales Reach Two-Year High as U.S. Rates Fall: Economy – Bloomberg 06-25-12

Salient to Investors:

Demand for new U.S. homes rose more than forecast in May, the most since April 2010.  The number of houses on the market held near a record low.

Brian Jones at Societe Generale sees a gradual improvement but says we’ve miles to go before we get back to normal.

Prices have climbed on a 12-month basis since February, the best performance in five years.

Builders broke ground in May at an annual pace the most this year.

NAHB/Wells Fargo sentiment index rose to the highest since May 2007.

The S&P Supercomposite Homebuilder Index is up 33 percent in 2012 versus a 6.2 percent gain for the S&P 500.

The average rate on a 30-year fixed loan dropped to 3.66 percent last week, the lowest in data going back to 1972.

Read the full article at http://www.bloomberg.com/news/2012-06-25/sales-of-new-homes-in-u-s-increased-to-two-year-high-in-may.html